Zalando reveals surge in sales and customers in first half of 2020

Zalando has reported a surge in sales and new customers in the first half of 2020, with the online fashion platform benefiting from the consumer shift to eCommerce during the Covid-19 crisis.

Revenue grew 19.6% year-on-year during the first six months of 2020, and sales were especially strong in Q2 after lockdown restrictions were implemented across much of Europe, increasing by 27.4%.

The online retailer also achieved a 20.4% increase in its customer base in H1, and said it now serves more than 34 million active customers in Europe.

Additionally, the group ramped up its partner and connected retail programmes during this period to allow fashion retailers to sell on its site more easily. In Q2, for instance, Zalando said that around 180 new brand partners signed up to its partner program. This was reflected in a 25.1% increase in gross merchandise volume (GMV) over H1 of 2020 and a 33% growth in GMV during Q2. GMV is a measure for sales made by both Zalando and partners using its platform.

In the trading update, Zalando signalled its intention to expand these partner programmes further, adding that it “has just introduced a new generation of data-driven tooling that aims to provide a self-service environment for partners”.

David Schröder, chief financial officer at Zalando commented: "In the past months we have proven the strength and agility of Zalando in many ways, no matter how challenging the environment. We have come out of the first wave of this pandemic stronger than we went into it as a result of our strategic clarity, our strong partnerships and an extraordinary team effort. Many of our partners have intensified their business on our platform in the last months, and we have managed to successfully grow together.”

The figures follow predictions made by Zalando in June that it would significantly outperform forecasts for both sales and profits in Q2 of 2020 due to consumers increasingly heading online for fashion purchases.

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